SMTA Monthly Bulletin May 2022

BULLETIN Your monthly news round-up of the Scottish Motor Industry

MAY 2022

POSSIBLE MOT FREQUENCY CHANGE SMTA RECEIVE REPLY FROM WESTMINSTER As you will have read in the press last month, transport secretary Grant Shapps suggested relaxing the frequency of MOTs. SMTA's Chief Executive wrote to him raising SMTA's concerns, highlighting that it would have an enormous detrimental effect to jobs and businesses in the motor industry not to mention the inumerous safety implications.

We have published the reply!

Baroness Vere of Norbiton Minister for Roads, Buses and Place Great Minster House 33 Horseferry Road London SW1P 4DR

Sandy Burgess FIMI Chief Executive The Scottish Motor Trade Association Ltd Palmerston House, 10 The Loan South Queensferry, Edinbu rgh EH30 9NS

Web site: www.gov.uk/dft Our Ref: MC/400497

25 May 2022 Dear Mr Burgess, Thank you for your email of 16 May to the Secretary of State, about MOT testing. I am replying as the Minister responsible for this issue.

As you know, the MOT sys tem has been in place for a long time and during that period cars have change d greatly. There have been considerable safety improvements with more wa rnings of problems to drivers and automation. In addition, there are new typ es of vehicle, in particular hybrid and electric cars.

It is right that we keep the system under review and con sider whether changes to testing should be made in the light of the se developments. Other advanced countries have diff erent periods for vehicle tes ts and in some cases do not have a comparable system.

However, safety is of param ount importance. Our roads are among the safest in the world and we will ma ke sure that remains the cas e. We will only bring forward proposals to change MOT requirements after tho rough assessment of the safety implications.

We will also of course con sider the implications for businesses of any change s.

Any changes would require legislation and before this is introduced, we would carry out a public consultati on which would give busine sses, members of the public and other interested parties the opportunity to con tribute.

Thank you for taking the tim e to write with your concer ns.

BARONESS VERE OF NO RBITON

The approved insurance broker to the Scottish Motor Trade Association

Tel: 0300 330 3000 E-Mail: baroness.vere@dft .gov.uk

s

INDUSTRY CALLS FOR CHARGEPOINT ‘VAN PLAN’ TO SWITCH OWNERS TO ELECTRIC New research shows 57% of van owners anxious about going electric over fears they won’t be able to find a charging point when they need it.

More than a third of all new van models now available with a plug, but only one in 20 buyers has switched to a battery powered van in 2022.

Industry calls for a national ‘van plan’ to accelerate electric van uptake and deliver ambitious government targets.

Tuesday 24 May, 2022 More than half of van owners say they are discouraged from switching to an electric van due to a lack of chargepoint infrastructure, according to new research published today by the Society of Motor Manufacturers and Traders (SMMT). An SMMT survey by Savanta ComRes found that 57% of people who own or lease a van in the UK are worried that they wouldn’t be able to find a public charging point when they need it.1 Persuading van drivers to switch to zero emission vehicles is essential if Britain is to become Net Zero while keeping the nation on the move. Vans directly support around one in 10 workers in Britain, acting as the essential workhorse for sectors such as construction and industry, trades such as plumbers, landscapers and cleaners, and home delivery services which grew rapidly during the pandemic.2 With more than four million vans on the road, electrifying the fleet will substantially reduce the UK’s transport-related carbon emissions, while also delivering cleaner air in cities. Those who switch can enjoy lower running costs, promote their environmental credentials and demonstrate sustainability when bidding for work.

More than a third of all new van models now on sale come with a plug following billions of pounds of investment by manufacturers, investment which has delivered massively improved payloads and battery range, with van owners spoilt for choice.3 Indeed,

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confidence in this range is high, with just 20% saying there isn’t enough variety of models to meet their needs. At the Commercial Vehicle Show, which opens today at the NEC in Birmingham, around 10,000 visitors will have the opportunity to discover the latest electric vans, alongside electric trucks, trailers and a vast variety of commercial vehicle technology.

Despite electric van uptake doubling in the last year, these vehicles still account for just one in 20 new van registrations – meaning the market is currently about two years behind that of cars, where uptake of zero emission cars is closer to one in five.4 With vans facing the same 2035 end of sale date for non-zero emission vehicles as cars, however, the automotive sector is calling on all stakeholders to match its commitment to drive the electric transition.

While just one in eight owners say they don’t plan to ever switch to an electric van, the vast majority (88%) say they would go electric by 2035 but a fifth of these owners say they will defer the decision for three to seven years. Overcoming this reticence is critical, therefore, with many people (58%) suggesting they might be convinced to buy an EV sooner if there was a greater number of public charging points. The availability of government incentives such as reduced tax or grants towards purchase would also steer 57% of respondents towards a zero emission van.

The UK already has a paucity of standard public charge points as take up of electrified vehicles accelerates. There is just one available for every 32 plug-in vehicles on the road, with fears exacerbated for van owners.5 Public chargepoints designed for cars will not always be suitable or in the right locations for vans, which also typically need a larger parking area. As a result, van charging provision must be factored into national infrastructure plans, with commensurate and binding targets for charge points for passenger

cars and commercial vehicles to match the commitments of the automotive industry.

While the survey reveals perceived battery capacity to be an influence on range anxiety, with 65% of respondents stating that longer battery range would encourage them to switch, these fears may be overstated, with an average range on a single charge of an electric van now around 150 miles. Just 6% of van owners say they exceeded this distance regularly, while four out of five averaged fewer than 100 miles in a single day.

Electric van buyers currently benefit from the Plug-in Van Grant, worth up to £2,500 for small vans and £5,000 for larger ones, as well as up to £350 towards installing a chargepoint at their place of work. However, homeowners no longer receive a grant to install a home charging point, meaning van owners who operate from home will need to pay the full price, which can be up to £1,500. Given 41% of respondents said they had nowhere to charge a vehicle at home or their depot, supporting both private and public chargepoint provision will be essential to drive the switch.

Mike Hawes, SMMT Chief Executive, said, “Britain’s businesses run on vans and if we’re to deliver the nation’s carbon emission cuts, we need them to move to electric. There’s an electric van to suit every business case, but we need a ‘van plan’ to ensure zero-emission driving works for the millions of people for whom their van is their livelihood and the millions more who rely on these workhorses for the delivery of their daily needs. The automotive industry is getting these new technology vehicles into the showrooms – we need government and other stakeholders to match our commitments to get them out on the road.”

Article courtesy of SMMT

FORD AND VOLVO AMONG COMPANIES TO SIGN LETTER CALLING ON EU TO BAN THE SALE OF NEW PETROL AND DIESEL CARS BY 2035 Ford’s European division and Volvo Cars are among 28 companies to sign a crossindustry petition for the EU to ban the sale of new petrol and diesel cars by 2035.

The manufacturers have joined the likes of Tesco, Uber and Curry’s in signing up to the appeal, organised by the Climate Group organisation.

Both carmakers are also calling for mandatory targets for charging infrastructure to ensure that a new wave of electric vehicle drivers will be able to access charging.

Volvo meanwhile, has already pledged to become an EV-only manufacturer by 2030.

The appeal comes as the European Parliament prepares to vote on measures that would effectively ban the sale of new petrol and diesel cars by the middle of the next decade.

It states that removing petrol and diesel cars from the road by then is imperative for Europe to reach its goal of net-zero emissions by 2050.

Ford has announced the release of seven new electric vehicles and vans by 2024, ahead of its entire passenger car line-up switching to electric-only by the end of the decade.

Read the full article

JUNE MOT FIGURES POST TOWN

SUM OF FORECAST TO EXPIRE

SUM OF EXPIRED TYPICAL

SUM OF CHANGE FROM TYPICAL

CHANGE FROM TYPICAL [%]

ABERDEEN

14799

21479

-6680

-31.10%

DUMFRIES

4567

6258

-1691

-27.02%

DUNDEE

7653

10793

-3140

-29.09%

EDINBURGH

22524

32630

-10106

-30.97%

FALKIRK

7934

11356

-3422

-30.13%

GLASGOW

26766

40751

-13985

-34.32%

INVERNESS

7371

11758

-4387

-37.31%

KILMARNOCK

9981

14416

-4435

-30.76%

KIRKCALDY

10566

15068

-4502

-29.88%

KIRKWALL

1417

2329

-912

-39.16%

LERWICK

689

1152

-463

-40.19%

MOTHERWELL

9104

13000

-3896

-29.97%

PAISLEY

7608

12133

-4525

-37.29%

PERTH

5598

7967

-2369

-29.74%

TWEEDDALE

3908

5114

-1206

-23.58%

TOTAL

140485

206204

May 2022 figures courtesy of DVSA (Driver and Vehicle Standards Agency)

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THE REAL DIFFERENCE BETWEEN CLAIMS UNDER AND OVER £10K Whilst the mathematical difference between claims under and over £10k may only be a couple of hundred pounds, in litigation terms, it could mean a difference of £20k or more.

This is all down to how the court allocates the case. If your customers claim for any amount up to £10k, the court will almost certainly allocate the matter to the Small Claims Track. In the small claims track, unless one of the parties has behaved particularly unreasonably, the losing party won’t have to pay the winning party’s legal costs (just the court fees).

However, a similar case with a slightly higher value of £10k plus will find its way into the court’s Fast Track. More complicated cases and those with a value over £25k will go into the court’s Multi-Track. Both fast track

and multi-track claims generally lead to the loser paying the winner’s legal costs. In some recent fast track cases, we have seen costs of between £20k and £30k. These figures can be argued down but ultimately, once the value of a case goes over £10k, if you are on the losing side, the risk escalates regarding how much your final bill may be.

If a case goes into the multi-track, the costs can be eye-watering.

Parties often do not realise the potential cost consequences of being on the losing side. Given this risk, if at all possible, it is worth thinking about bringing the value of a claim down. As a recent example, there was a dispute over an £80k motorhome purchased by one of our clients. A refund was agreed but the parties could not reach an agreement on the cost of some ancillary

ONE-IN-FIVE CAR BUYERS DELAYING PURCHASE DUE TO COST OF LIVING CRISIS

matters. So, instead of issuing a refund for the entire £80k, we negotiated a partial settlement, leaving less than £10k to argue over. As the court claim was now less than £10k, it went into the small claims track and reduced the cost risk from a possible £30k to nothing.

Litigation isn’t always just about having a strong argument, there are many factors that can help you win a case and reduce your risk. Our legal team is well versed in assisting clients through the court process, so if you are in the motor trade, you know where to come.

Article courtesy of Lawgistics

One-in-five new and used car buyers are putting off their next purchase as they feel the pinch of the cost of living crisis, eBay Motors Group research suggests.

Revealing the impact of the squeeze on household incomes in the face of rising food, fuel and energy costs which sent inflation soaring to 9% in the UK, the latest eBay Motors Group’s ongoing Consumer Insight Panel polled over 3,000 in-market buyers to see how car buying decisions might be affected.

While 28% of respondents said rising energy bills would not influence their decision to buy a car, nearly a quarter (23%) said they would delay their next car purchase as a further 29% will now buy a cheaper car and 20% will buy a smaller one.

Read the full article here

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FAILURE TO DELIVER GOODS – BUSINESS TO BUSINESS (B2B) SALES We are seeing more cases where sales between traders are falling through, resulting in our clients being thousands of pounds out of pocket and without a vehicle.

How does this happen?

Section 28 of the SOGA provides that the

Typically, our client agrees to purchase a vehicle from another trader at an agreed price. Payment is made and a delivery or collection date is agreed between the parties. However, on the date of delivery or collection, there is no vehicle in sight.

The selling trader apologises and promises the vehicle will be available for delivery or collection on another date.

delivery of the goods and payment of the

Several weeks later, despite these promises, our client is still without the vehicle.

If the seller does not comply with the above

In these circumstances, our client as the buyer, will be covered under Sections 27-29 of the Sale of Goods Act 1979 (“SOGA”):

contract, entitling the buyer to receive a full

price are concurrent conditions, meaning that the seller must be ready to give possession of the goods to the buyer in exchange for the price.

Section 29 of the SOGA provides that the seller is bound to send the goods to the buyer, within a reasonable time.

requirements, the seller will be in breach of refund.

Section 27 of the SOGA provides that it is the seller’s duty to deliver the goods, and for the buyer to accept and pay for them.

Article courtesy of Lawgistics

TRADE SNIPPETS Vauxhall sees ‘record’ retail orders for new cars in March Article courtesy of Motortrader

Vauxhall axes Insignia with immediate effect, but fleet favourite could return as an EV Article courtesy of CarDealer Magazine

Volkswagen’s takeover of Europcar set to move a step closer, say sources close to deal Article courtesy of CarDealer Magazine

Two thirds of car buyers will never buy a diesel Article courtesy of AM Online

Tesla opens Supercharger charge points to all EV owners Article courtesy of AM Online

Mercedes to axe cheaper models and ramp up direct sales Article courtesy of Motortrader

5

MOT CHANGES 'A CHANCE TO IMPROVE CUSTOMER SATISFACTION AND TRANSPARENCY', SAYS CitNOW Transparent video communications could boost customer satisfaction in response to recent MOT changes, says CitNOW.

Article courtesy of AM Online

As the revamped MOT has become “more difficult” to pass, CitNOW research highlighted that the use of video makes customers more confident in approving work.

CitNOW’s chief executive, Alistair Horsburgh (pictured), said: “Video has struck a chord with customers because they value the transparency it gives in the approval process.

"With a more rigorous MOT in place, the aftermarket industry has an opportunity to reinforce customer trust with a technologyled approach.”

SMTA MOT SEMINARS We'd like to thank all our members who came along to listen to the latest information direct from the DVSA. We'd also like to thank Dingbro and Delphi for their support at these events.

6

The changes have altered how faults are categorised, with new ‘dangerous’, ‘major’ or ‘minor’ labels and new tests have been introduced.

According to an RAC survey, nearly half of motorists were confused about exactly what the changes meant.

Horsburgh said: “For workshops and motorists alike, the MOT can be tough at the best of times, but we now have millions of drivers across the UK who might not understand the new MOT rules, or even realise that it’s changed."

LATEST CAR FIGURES

FUEL TYPE

REGISTRATIONS BY REGION

APRIL 2022

YEAR TO DATE Petrol

30,753

Diesel

5,346

Petrol/Electric

7,005

Total Scotland

10,468 577

Grampian

4,229

Electric

1,170 Central 1,061

95

Diesel/Electric

=

Summary

Strathclyde

47,547

148

536,727 2,750

4,753

Vauxhall

3,680

Ford

7.16%

Kia

3,332

7.01%

Volkswagen

3,203

6.74%

Toyota

2,642

5.56%

BMW

2,607

5.48%

Peugeot

2,149

4.52%

Mercedes

2,128

4.48%

Hyundai

1,774

10.00%

7.74%

3,406

Audi

228

5,500

3.73%

TOP SELLING

MARQUES YTD 2022 Figures courtesy of the SMMT (Scottish Motor Manufacturers and Traders)

1,500

3,000

1,168

Ford Puma

1,134

Mini Mini Kia Sportage

895

Vauxhall Crossland

848

Kia Niro

Borders

1,175

Vauxhall Mokka

Volkswagen Golf

Lothian

2,433

Vauxhall Corsa

Peugeot 208

Fife

Dumfries & Galloway

0

Nissan Qashqai

Tayside

4,531 1,359

TOTAL UK CAR MARKET:

0

783 611

119

Petrol/LPG

Highlands

796 789 784 767

YEAR TO DATE

TOP 10 CARS 7

ISSUE

OUT NOW! SMTA AUTO INSIGHT ISSUE 9

009

S IN FOCUS FEMALEspecia l event Join us for this

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OTIVE M&A AUTOM

MEMBER PROFI

Supporte d nals Motor Professio e for Scottish The Magazin

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by brought to you

READ IT HERE

Incorpor ating

SMTA CONTACTS

MEMBERSHIP ENQUIRIES/ TRADING PARTNERS: Norman Stirling – 07917 095014 Membership Development Manager Marcus Lawrence – 07375 057561 Territory Account Manager, Western Region Stuart Kennedy – 07375 057560 Territory Account Manager, Northern Region

MOT QMS ENQUIRIES

WOULD YOU LIKE YOUR GARAGE TO FEATURE IN SMTA’S MAGAZINE? SMTA produces a quarterly magazine to all our members, if you haven’t got one yet our Territory Account Managers will be visiting your garage soon with a copy for you.

If you’d like your garage to feature please contact: karen.thompson@smta.co.uk

DVSA MOT ANNUAL TRAINING & ASSESSMENT 2022/2023 Book your Training & Assessment today - call us 0131 331 5510 or email pauline.galloway@smta.co.uk We’re pleased to advise there’s no price increase for 2021/22 SMTA member price

- £52.00 (plus vat)

David Innes – 07789 264228 Operations Manager, Support Services Colin Meldrum – 07917 042576 Support Services Consultant Gordon Laing – 07799 732124 Support Services Consultant

APPRENTICE TRAINING ENQUIRIES Fraser Miller – 07789 264229 Apprentice Training Manager Kevin Millar – 07593 800386 Kickstart Gateway Project Manager

EMPLOYMENT LAW ENQUIRIES Moira Gaynor – 0141 331 5150 Company Secretary/Finance Manager

SCOTSURE WARRANTY: Lynn Greig – 07597 581335 Scotsure Account Manager, Scotland Claims and Enquiries – 0131 331 5512

EVENTS & MEDIA ENQUIRIES: Karen Thompson – 07922 079889 Events & Media Manager

ADVERTISING/SPONSORSHIP ENQUIRIES: Wendy Hennessy – 07974 380140

Non-member price

- £60.00 (plus vat)

This bulletin is kindly supported by

Scottish Motor Trade Association Ltd., Palmerston House, 10 The Loan, South Queensferry EH30 9NS SMTA Ltd Tel: 0131 331 5510

www.smta.co.uk

SMTA is proud to support:

Disclaimer: Whilst we endeavour to ensure the information in this bulletin is up to date and correct, we make no representations of any kind, express or implied, about the completeness, accuracy, reliability and suitability. Any reliance you place on such information is therefore strictly at your own risk.